Question
Delta Construction Corporation plans to buy several tons of steel next year to build a sky scraper. The firm is concerned about price volatility in
Delta Construction Corporation plans to buy several tons of steel next year to build a sky scraper. The firm is concerned about price volatility in the steel market. Which of the following is a valid strategy for hedging this exposure?
| a. | Hold (buy) call options on steel |
| b. | Hold (buy) put options on steel |
| c. | Write (sell) call options on steel |
| d. | Write (sell) put options on steel |
| e. | None of the above |
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Introduction To Machine Learning In Quantitative Finance An Advanced Textbooks In Mathematics
Authors: Hao Ni, Xin Dong, Jinsong Zheng, Guangxi Yu
1st Edition
1786349361, 9781786349361
